Davis' Numbers Continue to Go South and other IEP Info

IEP just completed a poll -- Davis' numbers are in "free fall". Relect
Davis -- 28%; Looking for Someone New -- 61%.

IEP is expecting coordinated attacks on the generators and marketers to
continue and increase. Daily beatings -- probably one company after another.
IEP is planning a Cal Journal ad for July to show that blackouts are a supply
problem, not a price problem and may bring LBJ back for another round.

IEP is beginning to work on messages for the summer -- when things are really
expected to get bad. Planning some pieces (1) how much CA could have saved
if they had entered into long-run contracts last summer; (2) supply issues --
NW problem (town emerging from the muck); (3) outage numbers -- fix now, so
can run during the summer, of course you take gens off line in off-peak hours.

The Democratic Congressional Committee has requested time from all the major
radio stations in Sacramento from May 26 through June 1. Theory is that it
will be used to respond to the President's visit.

SoCal gas has announced that it may have to curtail gas to power plants this
summer. SoCal Gas says it has to put gas in storage for winter and may not
be able to do that and serve the power plants. Apparently, SoCal is shipping
gas to Mexico at the same time. That will not look good to CA politicians.

Sue Mara
Enron Corp.
Tel: (415) 782-7802
Fax:(415) 782-7854